HomeMy WebLinkAbout1998-06-08 98-236 ORDERCOUNC ACTION
Date: lune 8, 1998 ItemNo.98�—
Item/Subjwt:Annual Fuel Contracts
Responsible DepathnenT PuxhesinglFuwomce
Conwrentary:
Again this year the City requested a fixed prim option for No.2 Fuel Oil in which the price would
rennin firm for the entire year.
We received three bids that guarantee a fixed price for the mare year. Irving Oil Corporation was the
low bidder for No.2 fuel oil, gasoline, diesel and kerosene. The fixedpriceforthe yearwasbasedon
fuel oil tutures prices at the Meresndle Exchange for (October 1998 through March 1999 contracts). The
price is established by averaging the cost oftwentyrone (21) Ocmbx-March futures multrach, plus a
fixed amouatof$0.0952/gal. The final fixed pace ferthe year will be established on June 9,1998 (the
price on May 28, 1998 was $0.5715/gahJ.
Sprague Energy was the competitive bidder at $0.5426/gal. for No. 5 and $0.4915/0. for No. 6 fuel oil.
This bid request was consolidated with the City of Brewer.
The award of the contracts to Irving OJ Corporation and Sprague Energy Corporation were reviewed by
the Finance Corundum on lune 1, 1998 and referred to the City Council with arecommerulation for
approval.
Dep H
Managers Comments:
City Manager
Associated Information: Award Recornmmdation and Bid Tabulation
Budget Approval: Various Funds and Accounts
Finance Director
Legal Approval: p2 /My� e
o-( <rl0 . u
City Solicitorju
Introduced For.
X Passage_ First Reading _Referral
M
Aea;gned to coundar Tyiar lune e, 1998
CITY OF BANGOR
(TITLE.) (Orbtrr A ffionzing AwardofAmtual Frelconkaca,.
By to City Coaeot{ of City OfBawor:
ORDERED.
yip
Awards= autMrizedtome following companies for the fuels as noted
belowT All awards are made on the basis of the low responsive bid received for the add-on for
each product, except the No.2 fuel oil trwardthat was based only on fixed price for the year.
I. No.2 Furl Oil: accept fixed price option la from Irving Oil $0.5715' gal.
2. No. 2 Fuel Oil, General Assistance: Irving oil at $0.5715' gal.
3. No. 1 Diesel: Irving ail at $0.5083 gal.
4. No. 2 Diesel: Irving ail at $0.4852 gal.
5. Kerosene: Irving oil at $0.5575 gal.
6. Kerosene, General Assistance: Irving oil at 50.5600 gal.
7. Gasoline 87 Octane: Irving oil at $0.5376 gal.
S. Gasoline 89 Octane: Irving oil at $0.5730 gal.
9. No.5 Fuel Oil: Sprague Fact" at $0,5426 gal.
10. No. 6 Fact Oil: Sprague Energy at $0,4915 gal.
'The final fixed price for the year will be established by the average of 21 contracts on the New
York Mercantile Exchange for October 1998 through March 1999.
IH cin Cmmcn
June 8, 1998
Passed
dL
CI CLARK
98-236
ORDER
Titley Authorizing Award of Annual Fuel
Contracts
......................a...............
......................................
a.
Aalgud to
TCouncilman
98-236
CITY OF BANGOR
- AWARD RECOMMENDATION
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BIB fTEM(S): Fuel Oil
DEPARTMENT: Citywide
BUDGET REFERENCE:
Requisition No.: Annual Contract Account Number: Various Accounts
Budgeted Amount: $ Various Available Saba": $ Various BudeNs
Total Amount of Award Recommended: $ ula
Vandor Recommended: hviva Oil Comorationand Somgue Energy Com.
Number of Bids Beat: l6 Number of Bide Received: 4
Date Advertised: Mav15.1998 Bid Opening Date: May 27.1998
Past Experience with Vendor: X Execlent—Good _ Fav_ Poor_No priorexperience
Has experience, references checked or other method ofvendar reliabilityestablid ed
OTHER COMMENTS:
Award all fuel contracts except No.5 and No.6 fuel oil to Irving Oil Corp., of Bangor, the low
bidder. Award the No.5 and No.6 fuel oil contracts to Sprague Energy of Beazaport, the low bidder for
these products. It is also recommended thatthe City accept fixed price option La (pay aftereach
delivery)far No.2finloil. ThefinaiftWpd"forfte wi116ebasedontheavengefiN prices
October- h4sach on the MERC Exchange on the day of formal acceptance by the City (furor 9,1998).
No.2 Fact Oil, including General Assistance: (fixed price) $0.5715 ($0.6540)
No. l Diesel: $0.5083 ($0.5221)
No. 2 Diesel: $0.4852
Rarosme: $0.5575 ($0.5370)
Ensnares, General Assistance: $0.5600 ($0.5520)
Gasoline, 87 Geneva: $0.5376 ($0.5410)
Gasoline, 89 Octane: $0.5730 ($0.5783) _
No. S Fuel Oil: $0.5426 ($0.5783) 1 \I L,Y//.
No.Fuel Oil: $0.4915 ($0.4152) \ i 1A.
CITY COUNCIL FINANC COMbDTTEE: ,� p�
tun. (3r/-vtiC cl.
i
yon, June 1, 1997
CRY OF BANGOR Pepe2$2
BIO TABULATNIN BM Opening: M" V. IM
LNNML FUEL CONTRACTS
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